Managing finances has become increasingly complex, with many people navigating rising living costs and an ever-expanding range of advice sources, from traditional experts to social media creators and AI tools. With so many options available, knowing which guidance to trust is not always straightforward.
New research from Zable, surveying 2,000 UK credit card holders, has found that the vast majority of UK consumers now seek financial guidance from unregulated sources, with many failing to properly verify the information they receive before acting on it. The company also conducted its own assessment of the reliability of popular AI platforms when providing financial advice.
Most Brits turn to unregulated sources
More than 4 in 5 (83%) respondents have sought financial advice from unregulated sources, including AI tools, social media platforms, and family and friends. Even in more complex areas such as investing, mortgages, and financial planning, a significant proportion of consumers still rely on informal guidance rather than regulated professional support.
Key areas where people seek unregulated advice include
- Salary and wages: 54%
- Savings: 49%
- Insurance (e.g. life, health, income protection): 48%
- Monthly budgeting: 48%
- Pensions: 48%
- Credit cards: 46%
- Investing: 45%
- Financial planning: 43%
- Renting versus buying property: 43%
- Wills and trusts: 40%
- Taxes: 38%
- Personal loans: 37%
- Mortgages: 36%
- Debt repayment strategies: 35%
- Debt consolidation: 33%
The findings also revealed a strong generational trend. Younger adults were significantly more likely to seek unregulated financial advice, with 93% of 25–34-year-olds and 92% of 35–44-year-olds reporting that they had done so. These age groups may also be navigating major financial milestones, including buying property, building savings, managing debt, and planning for families, which can increase the demand for accessible and immediate financial guidance.
AI tools tested for reliability
Around 1 in 10 credit card holders are already using AI tools for financial advice across areas such as budgeting, investing, and insurance. Zable tested their reliability by asking four major AI tools, Gemini, Grok, ChatGPT, and Claude, common personal finance questions before awarding each response a pass or fail mark.
The results were weak across the board, with most tools defaulting to US-focused advice, including references to 401(k)s, FDIC insurance, and American savings guidance that does not apply to UK consumers. Claude recorded six passes, although some responses still included outdated UK information. Grok recorded no passes across all nine questions, while ChatGPT achieved two passes and Gemini three.
Few consumers check the risks
Despite growing access to financial information online, many consumers fail to properly verify the guidance they receive before making financial decisions. Some 68% do not check the risks involved before acting on financial advice, while only 24% would check a financial professional’s credentials before following advice. Just 22% would investigate whether advice may be influenced by sponsorships, commissions, or conflicts of interest.
With the growing influence of online finfluencers, particularly on platforms such as TikTok, where complex financial topics are often simplified, limited scrutiny can leave consumers vulnerable to misleading or incomplete advice.
Bad advice is costing Brits money
Poor financial advice is reportedly costing Brits hundreds of pounds a year. Almost a third (29%) of credit card holders, equivalent to more than 10 million people, said they had lost money through bad advice relating to credit cards, with 21%, or nearly 7.5 million people, reporting losses of £100 or more in the past 12 months.
Investment advice also carried a financial cost, with 28% reporting losses linked to poor guidance in this area. Mortgage-related advice carried even greater consequences, with the most commonly reported loss range being £500–£1,000, reflecting the higher stakes involved in property-related decisions.
Where to turn instead
Arielle Rogers Jenkins, Senior Product Manager (UK Credit Cards) at Zable, says starting with regulated or official sources is key. “When searching for financial advice, starting with regulated or official sources such as financial advisers, banks, building societies, and government backed guidance services is key, as these organisations are held to specific standards and accountability in the UK.”
Jenkins adds that for more complex decisions, professional advice is especially valuable. “For those making more complex decisions around investing, mortgages, pensions, or long term financial planning, speaking to a qualified financial adviser can help ensure advice is tailored to individual circumstances. Consumers can also verify that advisers are authorised by the Financial Conduct Authority (FCA) through the FCA Register and confirm businesses are legitimately registered through Companies House.”
Jenkins also cautions against relying too heavily on informal sources. “While AI tools, forums, podcasts, YouTube videos, and social media can be useful for building financial understanding, this type of content is often generalised and should always be researched further before acting on the advice. A lot of advice online, particularly on social media, could be linked to sponsorships, commissions, or product promotions, so it’s important to seek clarification and avoid making financial decisions under pressure.”